“What decentralized finance shows us is that financial instruments can move entirely to the blockchain…You can basically create anything that you want, using other cryptocurrencies and stablecoins to fund new digital assets and products that are financially interesting.” — Philip Gradwell
There has been a paradigm shift brewing in the arena of DeFi investing. Derived from the word ‘HOLD’, the term ‘HODL’ developed in the context of buying and holding Bitcoin and other cryptos. HODL stands for “Hold On for Dear Life” and originated in early 2013 to illustrate the wild move in Bitcoin’s price when it experienced a 10x increase in just four months. Now, the term HODL, or ‘HODLing’, has become a catchword among crypto enthusiasts to describe a long-term approach to crypto investing. HODLing is not for the faint of heart. While an increasing number of people are turning to crypto as an investment vehicle, not everyone appreciates the price volatility. Earning interest on your HODLing strategy has developed as a popular alternative, allowing crypto investors to stabilize that volatility. If the market for that crypto asset does well, you will have grown your profits. If it does poorly, you will have mitigated your losses and possibly gained despite the drop in price. Crypto ‘staking’ emerged as a way to earn passive income on crypto holdings, where investors earn…
